Boeing Reports!

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<p>Later today (July 29), before the US market opens, Boeing (NYSE: BA) will release its second quarter report. As in the last 4 quarters, the company has only been able to exceed market expectations once, in the second quarter of 2019, when the market was expecting a loss of $6.69 per share and the company reported a negative report of $5.82, Boeing investors were becoming used to disappointment even before the COVID-19 virus. It is even more worrying when you read the annual report of a loss of $636 million in total corporate revenue.</p>
<p>So, now that the first half of 2020 is over, looking at the orders and cancellations in the figure below, provided by AeroAnalysis, the impact of the virus becomes clearer.</p>
<p><a href="https://analysis.hotforex.com/wp-content/uploads/2020/07/Boeing-orders.png"><img class="wp-image-154896 aligncenter td-animation-stack-type0-2" src="https://analysis.hotforex.com/wp-content/uploads/2020/07/Boeing-orders-300×168.png" sizes="(max-width: 444px) 100vw, 444px" srcset="/wp-content/uploads/2020/07/Boeing-orders-300×168.png 300w, /wp-content/uploads/2020/07/Boeing-orders-1024×575.png 1024w, /wp-content/uploads/2020/07/Boeing-orders-768×431.png 768w, /wp-content/uploads/2020/07/Boeing-orders-1536×862.png 1536w, /wp-content/uploads/2020/07/Boeing-orders-2048×1149.png 2048w, /wp-content/uploads/2020/07/Boeing-orders-696×391.png 696w, /wp-content/uploads/2020/07/Boeing-orders-1068×599.png 1068w, /wp-content/uploads/2020/07/Boeing-orders-749×420.png 749w" alt="" width="444" height="248" /></a></p>
<p>Overview of Boeing order and delivery in the first half of 2020 (Source: AeroAnalysis)</p>
<p>Net and delivery orders have changed to minus 344 and minus 169, respectively, meaning that nothing is better than last year for 2020, while commercial aircraft orders are lower and cancellations are higher. Most airlines are not able to use more than 20% of their current capacity.</p>
<p><span><strong>So, the question is, what should we expect?</strong></span></p>
<p><a href="https://analysis.hotforex.com/wp-content/uploads/2020/07/Boeing-Q-Estimate.png"><img class="wp-image-154906 aligncenter td-animation-stack-type0-2" src="https://analysis.hotforex.com/wp-content/uploads/2020/07/Boeing-Q-Estimate-300×114.png" sizes="(max-width: 473px) 100vw, 473px" srcset="/wp-content/uploads/2020/07/Boeing-Q-Estimate-300×114.png 300w, /wp-content/uploads/2020/07/Boeing-Q-Estimate-768×292.png 768w, /wp-content/uploads/2020/07/Boeing-Q-Estimate-696×265.png 696w, /wp-content/uploads/2020/07/Boeing-Q-Estimate.png 818w" alt="" width="473" height="181" /></a></p>
<p>As investors and traders, we must first examine whether this report can meet current very low expectations. <strong>Zacks estimate $0.34</strong> per share, much better than the negative <strong>$1.70</strong> in the previous quarter. However, it is likely that larger investors will not be looking for revenue reporting as much as they are following vaccine news and headlines. Only a reliable vaccine can bring the world back to normal, where people can fly and travel again, so the current quarterly report, even though it  catches the eye, is not something investors are looking for. In addition to virus and vaccine news, US aid packages will also be important because the industry has been hit harder than expected.</p>
<p>Finally, it should be noted that even if the orders from the defense industry do not fall, but continue to grow, it will still not cover the company’s commercial orders.</p>
<h4><strong>Technical overview</strong></h4>
<p><a href="https://analysis.hotforex.com/wp-content/uploads/2020/07/Boein-Weekly.png"><img class="wp-image-154886 aligncenter td-animation-stack-type0-2" src="https://analysis.hotforex.com/wp-content/uploads/2020/07/Boein-Weekly-300×138.png" sizes="(max-width: 546px) 100vw, 546px" srcset="/wp-content/uploads/2020/07/Boein-Weekly-300×138.png 300w, /wp-content/uploads/2020/07/Boein-Weekly-1024×470.png 1024w, /wp-content/uploads/2020/07/Boein-Weekly-768×352.png 768w, /wp-content/uploads/2020/07/Boein-Weekly-1536×704.png 1536w, /wp-content/uploads/2020/07/Boein-Weekly-696×319.png 696w, /wp-content/uploads/2020/07/Boein-Weekly-1068×490.png 1068w, /wp-content/uploads/2020/07/Boein-Weekly-916×420.png 916w, /wp-content/uploads/2020/07/Boein-Weekly.png 1919w" alt="" width="546" height="251" /></a></p>
<p>As you can see in the weekly chart below, the current <strong>$170</strong> level is below 38.2% of its Fibonacci levels, which are also below the 50- and 20-day moving averages, while the RSI is not in any of the charts. It could be above 42, and while the market volume is also growing, it confirms enough strength to continue the current downtrend. <strong>$152(23.6%</strong> Fibonacci) is the next support to which a negative report could easily push the price, while with positive news and reports, the first resistance level would be at the <strong>50-DMA ($175</strong> and then the next Resistance at <strong>$188)which</strong> is also 38.2% Fibo.</p>
<p><strong><a href="https://www.gohfm.com/en/trading-tools/economic-calendar.html">Click here to access the economic calendar</a></strong></p>
<p><strong>Ahura Chalki</strong></p>
<p><strong>Market Analyst</strong></p>
<p><strong>Hot Forex</strong></p>
<p><strong>Disclaimer: </strong>This is provided as a marketing message with general information and does not include independent investment research. There is no investment advice in this marketing message and there should be no such presumption. Also, buying and selling any financial instruments should not be based on this message. All information in this article has been compiled from well-known sources. Information collected from the past will not necessarily reflect future conditions. Users acknowledge and agree that any investment in leveraged products is subject to a degree of ambiguity. They also acknowledge and acknowledge that any investment in this area is of a very high risk nature and that users are solely responsible for this risk. We assume that if we invest based on the information contained in this message, we will not be liable for any possible losses.</p>
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